National Peroxide Ltd Falls to 52-Week Low of Rs.376 Amidst Weak Financial Metrics

Stock Performance and Market Context

On the trading day, National Peroxide Ltd’s share price touched an intraday low of Rs.376, representing a 6.08% drop from previous levels and underperforming its Commodity Chemicals sector by 4.97%. The stock closed with a day change of -5.46%, continuing a downward trajectory that has seen it fall nearly 48.15% over the past year. This contrasts sharply with the Sensex, which gained 0.64% on the same day, trading at 81,235.59 after a volatile session that saw an initial drop of 167.26 points before a sharp recovery.

Notably, National Peroxide Ltd is trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. The stock’s 52-week high was Rs.770, highlighting the extent of the decline over the last twelve months.

Financial Metrics and Fundamental Assessment

The company’s long-term financial health remains a concern. Over the past five years, National Peroxide Ltd has experienced a compound annual growth rate (CAGR) decline of -135.58% in operating profits, indicating persistent erosion in core earnings. The average EBIT to interest coverage ratio stands at a weak 0.14, reflecting limited capacity to comfortably service debt obligations.

Return on Equity (ROE) has averaged a modest 1.90%, suggesting low profitability relative to shareholders’ funds. The latest six-month period ending September 2025 saw a 77.78% contraction in PAT, which stood at Rs.1.28 crore, further underscoring the challenges in generating consistent earnings.

Additionally, non-operating income accounted for 263.49% of profit before tax (PBT) in the latest quarter, indicating that a significant portion of reported profits is derived from sources outside the company’s primary business activities.

Relative Valuation and Risk Profile

National Peroxide Ltd’s stock is considered risky when compared to its historical valuation averages. The company’s profits have declined by 113% over the past year, a factor contributing to the stock’s underperformance relative to the BSE500 index across multiple time frames including the last three years, one year, and three months.

The Mojo Score assigned to the stock is 12.0, with a Mojo Grade of Strong Sell as of 7 May 2025, an upgrade from the previous Sell rating. The Market Cap Grade is rated 4, reflecting the company’s micro-cap status within the Commodity Chemicals sector.

Shareholding and Sectoral Position

The majority shareholding remains with the promoters, maintaining control over the company’s strategic direction. National Peroxide Ltd operates within the Commodity Chemicals industry, a sector that has seen mixed performance amid broader market fluctuations. Despite the Sensex’s positive movement on the day, the stock’s decline highlights sector-specific pressures and company-specific challenges.

Summary of Key Indicators

To summarise, National Peroxide Ltd’s stock has reached a new low of Rs.376, reflecting a year-long decline of 48.15%. The company’s financial indicators reveal weak profitability, limited debt servicing ability, and a reliance on non-operating income to bolster earnings. The stock’s technical position below all major moving averages further emphasises the prevailing downward trend.

While the broader market, led by mega-cap stocks, has shown resilience with the Sensex gaining 0.64% on the day, National Peroxide Ltd’s performance remains subdued within its sector and relative to market benchmarks.

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